Budget hotel chain Travelodge has axed 15 staff from its head office in Thame, at the same time as announcing the opening of seven new hotels.

Shakila Ahmed, a spokesman for the company, which is owned by investment group Dubai International Capital, confirmed the 15 redundancies at its headquarters in Thame, plus four regional job cuts.

Asking why the redundancies were happening at the same time as a major expansion, she said: "The new hotels are being opened across the UK, but the cost-cutting exercise is at head office. It is a review that we had to do to keep costs down."

The new hotels in Newquay, Bournemouth, Liverpool, Edinburgh, Norwich, Macclesfield and Farnborough (Hants) are expected to create 150 new jobs and represent an investment of £22m.

In a competitive market, Travelodge slashed its prices from £29 to £19 a night in the fight for market share with Premier Inn and Holiday Inn Express.

The company said it aimed to recruit all its new staff from the unemployed.

Travelodge chief executive Grant Hearn said, “Despite a tough year for the hotel market, we have continued to grow and offer opportunities nationwide.

"Our success in recruiting from the long-term unemployed is something that we are particularly proud of and are committed to continuing.”